Sounds fine to me. She's happy, why change it for no reason? She fits in the bed, she likes it, she sleeps well. When the time comes that she starts to climb out, you can just put the rail down so that she doesn't have so far to fall. The rail is still up enough to keep her from rolling off the bed in her sleep, but it won't impede her getting out.
My grandchildren skipped the toddler bed stage entirely - the crib was in the room along with a twin bed (great for night time nursing) and sometimes they would lie in the twin to read or snuggle with a parent. As long as it didn't make them think the parent was going to sleep there, it was fine. You can put a twin in there at some point, if it will fit, and use it for dolls or as a reading area. You can set it up as a day bed - like a couch - if you want. You could consider putting it in a corner and putting the crib next to it, so there will be barriers on 3 sides (2 walls and a crib). When she starts sleeping there, her comforting crib will be right next to her and also serve as a safety rail.
I am always 'shocked' at people who are 'shocked' at harmless things other parents do! We took a lot of heat, for example, when we didn't have huge expensive birthday parties for our kids. We played old-fashioned games (which were "new" to the kids!) and kept it small. We took a lot of criticism for not have a pony, a carnival, and 35 friends! Well, our kids grew up fine. They don't need 35 gifts and so much excitement they can't speak to or play with their friends! We never bought them Play Stations either, and people had a fit. So just do what's right for you and raise a happy kid - you're already doing it!